VICI Properties Inc. VICI reported third-quarter 2026 adjusted funds from operations (AFFO) per share of 62 cents, in line with the Zacks Consensus Estimate. The figure increased 4.3% year over year.
Total revenues rose 5.8% to $1.07 billion and surpassed the consensus mark of $1.06 billion by 0.1%. The top line benefited from higher sales-type lease income and contributions from lease financing receivables, loans and securities.
VICI's Revenue Mix Reflects Lease Growth
Income from sales-type leases increased 4.7% year over year to $556.7 million. Growth reflected contributions from the Clairvest Northfield Park lease and PURE Master Lease, alongside contractual rent escalations across existing properties.
Income from lease financing receivables, loans and securities climbed 7.7% to $482.6 million. Within this category, income from loans and securities rose 29.8% to $79.1 million, supported by higher interest income from senior secured loans, mezzanine loans and preferred equity investments.
VICI Expands Its Tenant Base Through New Lease Agreement
During the third quarter, VICI announced an agreement to enter into a separate triple-net master lease with a subsidiary of Highfield Investment Group. The agreement relates to Century Mile Racetrack and Century Downs Racetrack in Alberta, Canada, following Century Casinos' planned sale of its operations.
The proposed lease carries an initial annual base rent of C$10.7 million and a new 20-year initial term, with four five-year renewal options. The transaction will diversify VICI's tenant roster without changing aggregate rental collections. Closing is anticipated in the fourth quarter of 2026 or the first quarter of 2027, subject to regulatory approvals and customary conditions.
VICI’s Portfolio Maintains Strong Occupancy
VICI's portfolio comprised 103 experiential assets, including 63 gaming properties and 40 other experiential properties, across the United States and Canada. Portfolio occupancy remained at 100%, while the weighted-average lease term, including tenant renewal options, stood at 39.4 years.
The company's annualized contractual real estate rent reached approximately $3.32 billion as of October 2026. Including annualized income from loans and securities, the total stood at approximately $3.62 billion. Caesars Entertainment and MGM Resorts International accounted for 38% and 32%, respectively, of annualized rent, highlighting the portfolio's concentration among major gaming operators.
VICI's Balance Sheet Supports Financial Flexibility
VICI ended the third quarter with $270.3 million in cash and cash equivalents. Total liquidity was approximately $2.5 billion, including around $2.2 billion available under its revolving credit facility. Total debt was approximately $17.2 billion, while the last-quarter annualized (LQA) net leverage ratio was 4.8 times.
In August, the company issued $1.75 billion of senior unsecured notes to refinance its remaining 2026 debt maturities. The offering carried an adjusted weighted-average interest rate of 5.42%. Subsequently, on Oct. 27, the board authorized a share repurchase program of up to $2 billion, expiring in September 2029.
VICI Raises 2026 AFFO Outlook
Management raised its full-year 2026 AFFO guidance to $2.695-$2.705 billion from the previous range of $2.675-$2.695 billion. The revised outlook increases both ends of the range, reflecting management's updated expectations for operating performance.
AFFO per share is now projected between $2.47 and $2.48 compared with the previous guidance of $2.45-$2.47. The Zacks Consensus Estimate is presently pegged at $2.47, within the projected range.
Currently, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
VICI Properties Inc. Price, Consensus and EPS Surprise
VICI Properties Inc. price-consensus-eps-surprise-chart | VICI Properties Inc. Quote
Performance of Other REITs
BXP, Inc. BXP reported third-quarter 2026 funds from operations (FFO) of $1.89 per share, beating the Zacks Consensus Estimate of $1.80 by 5%. FFO increased 8.6% from the year-ago quarter. Lease revenues increased 4.5% year over year to $846.2 million, surpassing the consensus mark of $839.9 million by 0.7%. Total revenues rose 4.6% to $911.4 million.
BXP’s results reflected better-than-projected portfolio performance, higher occupancy and growth in same-property net operating income (NOI), which supported the FFO and revenues beat.
Welltower Inc. WELL reported third-quarter 2026 normalized FFO of $1.67 per share, beating the Zacks Consensus Estimate of $1.64 by 1.8%. The metric increased 24.6% year over year. Total revenues of $3.72 billion surpassed the consensus mark of $3.63 billion by 2.5% and rose 38.4% year over year.
WELL’s results benefited from robust senior housing operating portfolio performance, with same-store NOI growth and improvement in average occupancy.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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